Spain Gets $2.1 Billion Boost for AI and Cloud Infrastructure From Microsoft

Microsoft has announced an expansion of its artificial intelligence (AI) and cloud infrastructure in Spain, pledging an investment of $2.1 billion over the next two years. It’s the company's largest investment in nearly four decades of presence in the southern European nation.

The move is “a testament to our 37-year commitment to Spain, its security, and development and digital transformation of its government, businesses, and people,” Brad Smith, President of Microsoft, announced on Twitter.

Microsoft will develop AI solutions to improve the government’s efficiency in everyday tasks and increase the effectiveness of its cyber security applications, the company explained in an official blog post. But a major chunk of the funds will go toward the establishment of a “Cloud Region” with massive data centers in Madrid and Aragon.

On the Spanish side, President Pedro Sánchez positioned Microsoft's investment as a nod towards the future.

“Microsoft's investment in Spain is going to quadruple, reaching up to 1.950 billion euros," Sánchez declared on Twitter. He expressed his gratitude towards Smith for his “confidence in the Spanish economy and our roadmap for an inclusive and secure digital transformation.”

Sánchez also pointed out the collaborative efforts to implement cybersecurity and AI in civic administration, underlining the importance of public-private partnerships.

Microsoft said it expects to help generate 69,000 new jobs by 2030 with its cloud data centers, adding nearly 8.4 billion Euros to the country’s GDP.

Spain is a key country for cloud service providers. Back in 2021, Amazon announced its intention to invest over $2.7 billion in the country after opening its own data centers in Aragón —a region that is also in Microsoft’s crosshairs.

This announcement comes on the heels of Microsoft's recent announcement of a 3.2 billion euro investment in Germany to enhance its AI infrastructure and cloud capacities there.

“We are seeing increasing demand for AI applications in key industries," Brad Smith said at the time, emphasizing the transformative impact of AI across various sectors.

Microsoft's aggressive investment strategy in AI and cloud services also reflects its aim to strengthen its competitive position against industry giants like Google, which has also announced increased spending in AI development. With over $10 billion invested in OpenAI—the developer behind ChatGPT—Microsoft is integrating leading AI models into its suite of services, positioning itself as a frontrunner in the technological race.

By some measures, Microsoft is now the biggest company in the tech sector after nearly doubling its market value since 2023.